I believe that Bitcoin and cryptocurrencies as a whole will disrupt lives of many people. Why? Here is what I think.
Any government has to support many of its infrastructures: social care, health care, education system, pensions, law enforcement, and military – you name it. Citizen income taxes play an important role in this.
Introduction of Bitcoin and other cryptos allow people to gradually transition to receiving income in crypto and do peer-to-peer money exchanges. In some cases of owning capital in cryptos, it is possible to bypass existing income taxes (more about that in my next article).
What that means is that those who are “left behind” in FIAT monetary system will have ever-increasing burden of income taxes to support current infrastructures.
It is very likely that this transitioning will drive changes in tax system (check my insights on this in the upcoming article). However, during this period, before governments implement tax system changes, cryptocurrencies will disrupt lives of those who simply cannot leave FIAT monetary system. Governments and banks will first blame it on those who switched to uncontrolled monetary system and will not make their life easy either.
I am all for the cryptos but we should be aware of possible developments.
